The first stage of the $11.5 million car park expansion at Port Macquarie Base Hospital is on track for completion by the end of 2019.
Construction of the staff car park at Toorak Court is well underway.
Mid North Coast Local Health District chief executive Stewart Dowrick said the additional spaces would provide much needed extra parking for staff.
Port Macquarie MP Leslie Williams and Mid North Coast Local Health District Governing Board chairperson Warren Grimshaw turned the first sod on the project in early May.
The new staff car park will be located at the northern end of the hospital allowing for all-day parking.
Stage two of the project will involve the construction of additional car parking spaces for patients and visitors.
"The total investment will deliver more than 300 new car parking spaces, helping to ease the burden on staff, patients and visitors to the busy regional hospital," Mr Dowrick said.
Car parking spots are in high demand at the Wrights Road hospital.
The project is scheduled for completion by the end of 2020.
The state government is funding the car park expansion.
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